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1985-03-04 City Council Summary Minutes
CITY COUNCIL MINUTES Regul ar Meeting March 4, 1985 CITY OF PALO ..ALTO ITEM P A G E Oral Communications 5 5 3 0 Item 01, Resolution of Appreciation to Larry Klein 5 5 3 0 Consent Calendar 5 5 3 1 Referral 5 5 3 1 Item i2 , Stop Sign System Update - Refer to Pol icy 5 5 3 1 and Procedures Committee Action 5 5 3 1 Item #3, Civic Center Plaza - Interim Improvements 5 5 3 1 • Item #4, Limited, Income Weatherization Rebate . 5 5 3 1 Item 05, Mending Machine Services- 5 5 3 2 Agenda Changes, Additions and Deletions 5 5 3 2 Item 06, PUBLIC HEARING: Historic Resources Board 5 5 3 2 Recommendation Re Amendment to Palo Alto Historic Building Inventory Item 07, PUBLIC HEARING: Historic Resources Board 5 5 3 3 Recommendation Re Amendments to the Palo Al to ',Historic Building Inventory Item #B, Report from City Council Subcommittee on Ice Skating Item #9, Architectural Review Board Recommendation Re Seasonal Fire Facility in Foothills Park _Item 010, Resolution Re Park Boulevard Underground Conversion Project No. 28 Item #11.9 Ordinance Re City Uniform Sales and` Use Tax .. Item 012, Naming of Arastra Property 5 5 3 5 5 5 4 1 5 5 4 2 5 5 4 3 ( 5 `4 3 Item #13, Request of Vice Mayo,r Cobb_ 'Re Cal averas 5 5 4 5 Project •� Item 014, Cancellation of March 15, 1985. Go nc it 5-5 ,4 9 fleeting Adjournment: 10:G5 p.m. 554 9` Regul ar Meeting March 4, 1985 The Cf ty Counc ii of the Ci ty of Pal o Al to met on thi s date in the Council Chambers, 250 Hamil ton Avenue, at 7:35 p.m. PRESENT: Bechtel , Cobb , Fletcher, Klein, Levy, Renzel , Sutorius, Witherspoon, Woolley ORAL COMMUNICATIONS 1. Bob Moss, 4010 Crme, thanked the staff and Councilmembers for the Terman Park Library sumach was dedicated on March 3, 1985. Those who attended the dedication were enthusiastic. The architect and staff did an excellent job of taking a non- descript school buil ding and turning it into an exciting 1 ibary. He acknowl edged and recognized Counc imember Klein and June Fleming for their participation. 2. Erica Prince, 302 College Avenue, said tree work . was con- tinuing in Palo Al to and an Arbor Day celebration was pl anted for March 9 at Peers Park. She was concerned about the staff report regarding street tree management because the p1 anting rate kept. going down. Originally, the Tree Task Force was set, a 7,500 tree pl anting goal for the next six years. That number went down to approximately 5000, and the staff report contained in the packet now stated 4,261 trees to be planted between now and 1990. She requested that i.f new poi icies were set about planting rates which affected the total City tree popul ation, Council be the ones to set the pol icy. 3. John Schaefer, 2140 Harvard Street, was an employee of the City, and spoke about electricity planning. He was in the business as a consultant and as an employee for about 10 years and held a Ph .D. from Stanford. In 1982, the Council passed a resolution committing the City to the Calaveras Hydro Plant, and since then, many changes occurred in the economics of the pl ant. Load management and conservation programs were imp) emented , and there were other possible load management and conservation programs which might be impi.eNented that would reduce the usabil sty of the pl ant. The Cal averas output did not match Palo Alto' s monthly requirements, and the cost of the Calaveras Pl ant was higher than the cost of other sources the City could use. He suggested the major change was in the wholesale electricity market since 1982. Since that time, cogeneration and other qualifying facia sties for el ectric gen- eration grew at costs considerably below that of Calaveras, and the possibil sty of sal es of the City' s surpl us output from Calaveras were such that the City could not avoid a substan- tial loss. The losses to be incurred by the. City under those c ircumstances PSade the cost of. what Palo Al to used even higher. Dependent upon the scenario examined, the 1986 equiv- alent present val ue loss ranged from $24 to $46 million. ITEM #1 RESOLUTION OF APPRECIATION TO LARRY KLEIN (COU 2) Mayor Levy said Larry Ki ein served as. Mayor' ,.of Pal o Alto - for a little mere than one year, and maintained admirable equanimity while presiding over -48 94orod ay evening "Counc ii sessions f Through- out his term, he made many thoughtful appointments to City 'commit- tees. During Mayor Klein's term, the Cityf-of -Palo Al to.mad.e sag- rlificant strides to maintain its quality of 1 lfe . in the face:; of increasing demands and pre.ssgres. Larry _,culminated. hit serf' ice as Mayor by presiding over a Crawl essl,y planned Super Burl at which the team su),ported `by the maj ority, of his constituents emerged - v is torious-. The Ci ty Counc ii honored'', LarrY tit eand conveyed their appr ee l tto n for his - 4ny services to the City of Palo Altos 5 5 3 0 3/04/85 MOTION: Mayor Levy moved, seconded, by Cobb, approval of the reseiutien *f appreciation MOTION FAILED BY A VOTE OF EIGNT ABSTENTIONS AND KLEIN "NOT PARTI- CIPATING." NOTION TO RECONSIDER: Ceunclloember Bechtel moved, seconded by Seetoriss, to reconsider the resol dtios of appreciation to Larry Klein. MOTION PASSED unanimously, Klein °not participating.° MOTION: Mayer Levy moved, seconded by Cobb, approval of the resolution of appreciative to Larry Klein. RESOLUTION 6364 entitled 'RESOLUTION OF THE COUNCIL OF nit CIf1 OF PALO ALTO HONORING LAWRENCE A. KLEIN° MOTION PASSED unanimously, Klein net participating. Mayor Levy expressed his appreciation to Councilmember Klein for his work throughout the year, and presented framed copies of the resolution and mayor Kl ein s namepl ate. Vice Mayor Cobb agreed that Councilmember Klein did a superb. job as Mayor. He presented Council member Klein with a cartoon "Super Mayor Council member Klein thanked his colleagues. He said it was an honor to serve as Mayor and he appreciated the support of his coll eagues. CONSENT CALENDAR NOTION: C.urcileeeaber Bechtel moved, seconded by Cobb, approval of the Consent Calendar. Referral ITEM 02 STOP SIGN SYSTEM UPDATE - REFER TO POLICY AND PROCEDURES 4 CT . Acti on ITEM #3, CIVIC CENT-E3I PLAZA p INTERIM SMPROYEP iTS (PWK 7-2) CCM : 202 : 5 ) City Manager Bill Loner recommends that Council approve an interim program for the Civic Center Plaza. ITEM #A LIMITED INCOME WEATHERSZATION REBATE (ENV g -n (CMR: 2Z7731 Staff recommends that Council approve the resod ution : which autho- rites receipt of grant funds and authorizes the Mayor to execute the _ funding agreement; and approve the Budget Amendment Ordinance to reflect receipt and disbursement of the grant funds. LOTION 6355 esti tI ed `RESOLUTION OF THE COIL - OF PALO ALTO APPROVING AND AUTHOR IZINC WWI ION OF A SOT : AMREERUUT IITH THE CALIFORNIA E $T. COO$I$SIOil REAM* T-0 WEATNU 1ZAT.1fl ,,ASSISTANCE FON PERSONS UNITED 'SCONE* ORDINANCE 3642 •retl ti ad °ORDIIUCE OF THE COUNCIL, OF THE CITY 1r PACO' ALTO ARMING i THE i0UET FOR TOE FISCAL YEAR 1041445 TO PROVIDE AN > ADOITI# A* APPROP IATIOM = FOR TIC CONSEIVATION AIR SOLAR- PROGRAN TO PROVIDE ._ FOR THE RECEIPT OF GRANT; FMOOS PE* THE CAL IFORRIA : ENERGY CO ISSION° 6 5 3 1 3104/85 ITEM #5, VENDING MACHINE SERVICES (FIN 16-2) (CMR:201:5) Staff recommends that Council approve the Wilson contract. AWARD OF CONTRACT Wilson Service Company NOTION PASSED unanimously. AGENDA CHANGES, ADDITIONS AND DELETIONS Vice Mayor Cobb ,added Item #12-A, Calaveras Hydroelectric Plant. ITEM #6 PUBLIC HEARING: HISTORIC RESOURCES BOARD RECOMMENDATION ( : �% - Councllmember Bechtel asked about th.e significance for the prop- erty owners. She understood that six of the nine buildings were already designated either Category 1 or Category 2, and she pre- sumed in terms of remodel ing, there would not be a change. For the other three properties not previously designated in Category 1 or 2, she asked what it meant in terms of rebuilding, etc. Zoning Administrator Bob Brown said Counci"Imember Bechtel was cor- rect that currently six of the nine structures were either Cate- gory 1 or 2. For those buildings there would be no change. Those buildings required review by both the Historic Resources Board (HRB) and the Architectural Review Board (ARB) for any exterior modifications. Currently, for the Category 1 and 2 buildings, the HRB reviewed any request for demolition permits and had the oppor- tunity to recommend to the City Council a stay on the issuance of those permits for a maximum of six months. For the three struc- tures recommended for inclusion. in the district that were Category 3 and 4:buildings, those buildings would become elevated to essen- tially the same status as dategory 1 and 2 in terms of the review procedures. Any exterior modifications would require HRB and ARB review, and the demolition review would also apply. Councilmember Bechtel clarified them was a maximum six-month deferral of a demolition, but it could not be held off indefi- nitely. She hoped all the buildings would be preserved and main- tained. Mr. Brown said according to the current ordinance, the maximum deferral on demol ition was six months. Mayor Levy declared the public hearing open. Receiving no re- quests from the public to speak, he declared the public hearing closed NOTION: C+ossct1seaber ilssl l ey stied, ssce ded by Cobb, to adept the Nistorir *ese rces Board recoaendatisn is amend the pale Alto Al storic Building : Inventory to lesl ede the following structures as as iii steric district: 520 Ra sea; 526 Ramona; 525-530 Ramona; 533.539 Miaow 532o 531, 535 iIameaa; 531, 540o 542 Ramona; 541- 545 llamas; 267 *ea31 toe; and 735 amiil t•n . NOTION PASSER Usasfinossl y . Couic1lmniber Woolley-. said this action was an important step because it preceded the nomination of the district to the National Register. While the local register :did not sake any great difference in the way properties were -handled, nomination and acceptance on the National Register could br.ing tax credits for the owners of the property which she believed would be helpful as Council < considered a Seismic ,hazard Ordinance. Further, Ceuncilteember Rentel correctly , {oted that- the Crocker Bank property, which adjoined the district, would probab1 be treated with a 'little more car*. 5 5 3 2 3/04/85 Counc ilmember Renzel said the Ramona Street area proposed as an histnrir_. district teas a special part of downtown and conveyed much of the earl ier flavor of Palo Al to. She hoped creating a hi storic district would impact any redevelopment on the vacant parcel . Mayor Levy concurred wi th his colleagues. He commended the members of the Hi storic Resources ward for their work. MOTION PASSED umaataaeesly. ITEM #7 PUBLIC HEARING: HISTORIC RESOURCES BOARD RECOMMENDATION E R M7,M i Ts TO THE PAS OT-NG TNVtNTORY (HOA 7-3) 100:11X:51 Zoning Administrator Bob Brown said the staff report erroneously contained information on 225 Fulton Street, The HRB recommended inclusion of 575 Hawthorne about which no .information was in- cl uded. He submitted the correct information to the City Council (which is can file in the Ci ty Clerk`s office) . Mayor Levy asked about Category 3, and what the upgrading to Categories 1 and 2 represented. Carolyn George, Chairperson representing the Historic Resources Board, said Category 1 were considered to be exceptional struc- tures or areas of preeminent national or stete importance; Cate- gory 2 were structures or areas associated wi th persons, events or development patterns of major regional significance or homes in which important people in Palo Al to or the greater Bay Area 1 iv ed; and categories 3 and 4 were contributing struc tures wi th lesser associations with persons, events/ or patterns of local signifi- cance. If someone wanted to do something to a Category 1 or 2 building, they were requested to go before the HRB for comments at which time the HRB could recommend a six-month stay of demolition. Categories 3 and 4 were recognized, but the HRB had no say about what happened with the building. By upgrading houses to Category 1 or 2, the HRB maintained some influence to retain the integrity of the building. Mr. Brown said pictures of the structures were contained in the historic building inventory. Vice Mayor Cobb was struck by the many structures moved up into the higher categories, and asked if there were lots more out there waiting for a similar kind of move. Ms. George said there were many more out there. Counc ilmember Woolley said the total number of buildings on the inventory was 384; [9 were exceptional, 65 were major, and 200 were contributing. e Ms. George said only one was suggested for upgrade to Category 1. Mayor Levy decl *red the publ is heering open. James H. Stone, 365 Lincoln, said most -of the buil dings were ci n- sidered categories 3 'or 4. He understood that when the buildings in Categories 1 and 2 were so identified, the, intent was to under- line the superior qualities- of those buildings, but avoid over- whelming the Council and staff with so many buildings that it was impossible to work with the ord ln'ance. When the . suggestion was made to reconsider the group of buildings, there was a question about the work load it created over a period of .four years. It was felt that no crisis existed in ma.n ag ing the hi storic building ordinance and the adrrisory function of the HRB. As he looked at Categories 3 and 4, .he believed there were' -many other buildings that should, be reconsidered in light of the new information, but did not believe there " woul d _ be many more to add to the present inventory; 5 5 3 3 3 /O4 /85. Councilmember Sutorius asked how much weight was assigned to his- toric personage involvement either in design, construction or occupancy of the home as opposed to architectural significance. Mr. Stone said the ordinance was designee to indicate that both types of criterion were important to the City. The inventory was an inventory of buildings, and the ordinaoce was designed to pre- serve buildings —not biographies. The two went together and one extreme woul d be the Elwell house at the corner of Embarcadero and Cowper. One would not look twice at the house architecturally, but coupled with the personage, it was deservedly in Category 2. There was a national register house on Cowper done by a first-rate architect, and .the original owner for whom it was done was .un- known. Squire house was architecturally a monument with a person- age of considerable interest. There was a house on Forest Court that became notorious because one of the early homeowners rose high in local affairs and in the State legislature and was found to have embezeel ed a great deal of money. Regarding the 20 pro- posed buildings, nothing he found changed their architectural interest. They were Category 3 without any doubt, and some could have just as easily been voted by the majority to be in Category 2. When one added the information about personages of local interest, typical of the, community, or with some particular con- tribution to the community, the combination was well worth recon- sideration. T,he weight would vary --there was no arbitrary, top heavy value. The combination of several values had to be con- sidered if the information was available. Councilor ember Sutorius bel ieved Mr. Stone cl early demonstrated why h ui s ery ices to the HR8 were so v al uabl e. He asked about the significance of the condition of the citation. Mr. Stone bel ieved the form used for the inventory was standard so the question of condition was included, In the original judgments and following, condition was not a criteria Counc ilmember Sutorius cl arified that from time to time there would be an opportunity to make appropriate changes in the text or indicators used so that i f a condition was not as was stated at the time of the original inventory, the information could be updated. Ms. George said if the condition of a building .changed, it would be noted. Mayor Levy declared the publ ic, hearing ,closed.. WISH: Cswsclleenber 'teazel moved, seconded by Seterirs, to adopt Historic . Resources. Hoard recommendation to. approve the pro- posed amendments to the Palo Alto Historic Building 1evetutery and change the Historic Categories of the following structures: Change from Cstepery 3 to Category 2 44$ Addison; Meese, 119 5ryent Street 355 Cborchill Avenel, 1421 Cowper Street, 1455 Cowper Street,22.5 Emegoon : Street, 545 Forest lvesse, 54.! Hale Street-, S67 Nile Street,`''575 5alwthert a Avenue, 351 liver Avenue, 475 Heiser Avenue, 740 :Masan = Mss., 433 Mel Avenue, 567 ,Mil►il le Avenue, 53S MAiuersi ty .Moir , $1* $elversi tic Avenel, 1431 ilaverley .Streets Chen s frei Lets, rD r„ ti Cate sr; 1 441 1islville Av+eeee Couhc #1 metier Wool i ey expressed her « prec 1 t#on to. Mr. Stone. She said, as pew information became avail=able, the source of that new lnformet1en was entirety titre Stone. Council had,,,him- to , thank for the forms, and he provided staff another 125 forOs wi+ich.: Were ready to be processed and put into the 'revised inventory. 5 ,5 3 -4 3/04/85 MOTION PASSED msaniaoasly. ITEM #8, REPORT FROM CITY COUNCIL SUBCOMMITTEE ON ICE SKATING (PWK 1-2 ) Vice Mayor Cobb said the various pl ayers involved in the ice skating issue were the YMCA, City staff, and interested parties. They met on many occasions, and the general direction of the meet- ings related to the possible takeover by the YMCA of the entire Middlefield Road site fcr their long term Palo Alto facility and the conversion of their existing site for housing. The YMCA had major commitments in Mountain View and the timing of the situation was not good. Consequently, it was essentially impossible to reach a financial and organizational approach to satisfy all parties.. The YMCA was also considering the now surplus Jordan School si to as another al ternative for their future Palo Al to location. To date, the rink operated on an essentially break even basis. There were not many alternatives and none were attractive. Suggestions were made to simply buy the land and land bank it for housing unless the ice rink alternative with YMCA participation happened sooner or for the City to proceed with some kind of general tax measure to deal with the larger issue of recreation and open space and include the ice rink therein. The Ci ty Attorney advised that a tax measure of that nature required a two- thi rds vote of the public, which was no, easy. Farther, there were indications that an initiative measure would be circulated to get a publ ic. mandate for the City to continue ice skating in Palo Al to . He held in hi s heart . the. hope that there was some way to keep the ice rink open, but it must be done in a financially responsible way. Jordan was a surplus school site, and it was clear that the City' s first priority in terms of any kind of land acquisition was the Jordan site. Whatever approach was taken to keep the rink open, there were priorities to consider, and the Council's fiduciary responsibility to the Ci ty was first. He was on the side of the rink and hoped a way could be found. He was concerned about the way the specific initiative was worded and hoped some improvement could be made to make it more useful in the i ong run. Councilmember Renzel asked if the Subcommittee had looked into the realistic possibilities of the Jordan site for. the YMCA since -it was unable to consider the Peery site, and the school district would undoubtedly put a short time frame on its decision to sell Jordan. Vice Mayor Cobb said he could not speak for the YMCA, but bel ieved the reason fon, the interest in the Jordan site was that there were existing facilities that :watched the kinds of things the "Y" wanted to offer as part of its program. He suspected that the same reasons that caused the laY„ difficultyin coming to a conclu- sion wi th regard to the Middlefield site appl ied to -Jordan or any other si to Jack Morton, Trust for Community Skating,_ 2343 Webster., said two years ago, assistance was _requested to prevent the premature demo - 1 ition of the Palo Alto 1 andeaark. After many appearances, the Council. autherized the metchi h. grant. After the first full sea- son of operation, _they operate at an excess. When requesting • the grant, the Trust requested enough time to provide. for .a long term solution, lint e.ss the Trust be accused =Of having. done nothing in the past few years about the long- term 'solution, it was appro- prtate to record a summation of their efforts! Their . first effort propoleo to al l ow the Shell Station to operate until` the Closing of the Arco Station, which enabled the. ice rink .to operate. at $800 per month plus rent for the indefinite future. Council rejected that proposal wi th` the resul t that• thefr. rent increased by• almost 300. percent. Thei ,-._ second endeavor was a mail lag campaign re- questing that' community Ice. skating be a permanent part of 'the recreation program. Coauncil assigned a .staff study, end the conclusion was that if the. City got -involved, it had to seriously 5x5 3 5 3 /04/85 consider the present structure in acquiring the land. That ryas a major doll ar outl ay, so a year ago, the Trust proposed to exchange the 1 of across from the used care lot or at least allow the voters the chance to vote on it, which Council al so rejected. Their final attempt at a long-term sol ution that evening was to take the matter to the voters of Palo Al to. There was some basic disagree- ment between the Council and the Trust as to who had the primary obligation to provide for community recreation. In 1983, they were °too 1 ate for that year's budget process; in 1984, they were a red flag in the face of Jarvis IV; and in 1985, they were a threat to the City's fiscal 'responsibility. It was true that elected official s were mandated to fiscal responsib11 fty, but Pal o Al to had a history of community excellence. It must have been some- thing other than fiscal responsibility that led prior Councils to acquire the Foothills Park, to fund the Lucy Stern Center, to support the Bayl ands, Lawn Bowl ing and Senior Center. Funding was a prcbl em and the land costs were beyond the means of a community program. Council- had many appl icants for Cable TV, but it chose to get involved for the betterment of the community. The Trust for Community Ice Skating hoped : the Council would also choose, before the initiative qualified, to get involved in the actual details of how community ice skating might be funded in Palo Al to T.he densi fication of the Middlefield corridor was brought about by Council actions and he suggested that at I east one- third of the additional revenue generated by those hundreds of units be ear- marked to acquire the site. The Trust did not believe it was unfair to take one-third from the current City reserves, and a third of the additional funds might come from land banking. Major changes were occurring on Middlefield and there were few options remaining, The Trust did not believe Mr. Peery was asking an unreasonable amount for the land, nor that the City would lose anything, The Trust expec ted to not consume the City' s $25,000 at the end of its second session of operation nor did it bel ieve that an investment in Palo Al to real estate would be to the Ci ty' s disadvantage. Councilmember Witherspoon understood that at the end of the pre- sent fi scal year, the rink would have a surpl us. Mr. Morton responded that as of April 30, 1984, the rink operated at an excess. With the triplification of rent, the rink still expected to break even, but did not expect as great an excess. Councilmember Witherspoon asked abeet an excess for 1985. Mr, Morton said the Trust hoped an excess would be there, Councilmember Witherspoon said if the initiative did not qualify or was voted down by the peopl e, did the City have any hope: of getting its $25,000 back. Mr. Morton said looking at the matter negatively, the Trust believed the City was only interested in its money. Looking posi- tively, the Trust hoped the City could see beyond the $25,000. The trust' s agreement with the. City required that they share the initial contribution and any excess one-third to the original donors, one- third to the YMCA and one-third to the City. If there was any excess after demolition and sal e of the equipment, the Trust would stand by its agreements City Auditor Michael Northrup said the bottom line did not look that good ifthe rent was tripled, He noted there was no reserve. for rep1 acement of any type of, equipment. Mr. Morton said the Trust did not have the luxury of looking into the future because nothing indicated they woti1d survive beyond May 1 The lease required - that the building be demolished on May 1 so no reserves were earmarked. 0 Councilmember Sutorius asked for a ball park figure on the number of individuals who participated at the Winter Club, Mr. Morton said historically the Winter Club had upwards of 35,000 admissions, and expected it to be the same the current year. The month of March was historically a heavy skating month. Councilmember Sutorius asked how 35,000 paid admissions during a season transl ated into individuals. He was sure than many were regul ar participants in the program. Mr. Morton said it was difficult .to determine how many of the same people returned. He said they tended to sell a family ticket which allowed multiple users at a reduced rate. Most of the families had four or five members, but they could not determine whether all five participated or whether two of the family repeatedly returned. Mayor Levy said Mr. Morton used the figure of 35,000 admissions, and if he read the report correctly, the figure was really $50,000 --not bodies. Mr. Morton said that was the single admission. Mayor Levy clarified that the operating revenue for admissions was $49,600, and the text indicated that the admission fees exceeded the projected 3 5, 000 by 15,000. Mr. Morton said a family ticket dropped the rate from $3 to almost $1. There was a substantial savings for Palo Alto families. Councilmember Renzel confirmed that the 35,000 admissions was arrived at by calculating the average family usage of the family pass. Mr. Morton said that was correct. Vice Mayor Cobb said when the process started, there was discus- sion that the moneys of the City would be seed moneys and an effort would be made to go out to the community to try and raise at least a portion of the needed money. The situation seemed to be that the City was the last resort, and he asked for a status report. Mr. Morton said one way to go to the •community was to ask if they were willing to use their tax revenue to support community ice skating. Vice Mayor Cobb said the initiative measure as drafted put a date certain by .which action must be taken which date could be in a time line in direct conflict with the potential purchase of the Jordan site. Since the City's resources were limited, there were prioritization problems, and he asked for comments. Mr. Morton said he did not know how to balance the priorities in Palo Alto. The pY" had to get -off Ross Road before they could sell out, and the problem with the Middlefield site was that the "Y" needed large gyms for pre -birth exercise type classes for which there was a great demand. Me did not know what, would happen wi th the 1 ease at Jordan. There appeared to be some economically attractive bids on the site, and he wondered whether the °'Y" could compete with them. The "V" did not feel it had an .immediate solu- tion for the Middlefield corridor, and the City needed to decide how much to count on the "Y" long term. The problem was how to decide on which alternatives to fund and then work out a sce- nario.. 5 .5 3 7 3/04/85, Barbara Crosl ey, 806 Rorke Way, said in wal king her petition around, she became aware that the voters in the - Midtown arca were keenly aware aid disturbed by the sudden and projected Inc rease in high density housing. They bel ieved the character and specialness o f the Midtown area was being sacrified. with the dubious dividend of increased traffic and congestion. The special ness incl uded the Winter Lodge. William Rosenberg, 820 Bruce Drive, said he and his family were participants of the Winter Lodge. His older boy was six years old and was enthrall ed with ice skating. They .used the other activ- ities avail able in Palo Al to, and he would not want those to be compromised by the Winter Lodge, but did not bel ieve they had to be. Ice skating was the first thing his six -year- ol d son ever put any effort into. It was nice to see him working hard at something. He asked that Council consider ways to keep the winter Lodge open and at its present location. Jacqueline Stewart, 1580 Walnut ©rive, Attorney for the Trust, understood that a University from San Francisco was interested in 1 easing the Jordan si to for five years at $1,000,000 per year. If that was a viable possibility, it might put Pal o Alto's position with regard to the ultimate financing of the site down the road five years and give a 1 ittl.e breathing room for acquiring property for ice skating facil ities now. She viewed ice skating as the one activity that most successfully combined athletics and fine arts. In Palo Al to, there seemed to be a love for what was cul tural ly enhancing and ice skating seemed to fit that rnol d well. She encouraged the community to do what it could to preserve that type o f offering to such a wide variety of ages and individual s. She believed that Palo Alto was purist and opined that it was not ready to have its children learn the fine art of ice skating at the shopping center. Hal =mah YanTeyl , 4017 Middlefield Road, had four children all of whom used the Winter Lodge as did she and her husband. She bel ieved the 29 -year activity which took place at the Winter Lodge did something unique in that it was one of the few places in Palo Al to where old and young could pl ay together. She encouraged Council to considerthat factor in the Winter Lodge decision. The Winter Lodge served many groups from scouts to the Community Association for the Retarded to hearing impaired youngsters. Larick Hill , 780 Palo Al to Avenue, grew up in Pal o M to and ice skated at the Winter Lodge. He bel ieved it was a wonderful insti- tution, but understood the realities of life were that $2.5 sill lion for the City to buy a piece of property was unrealistic. Regarding the City' s commitie e it to the Jordan si te, Pal o Al to had the opportunity to buy property at the Jordon Si to at 25 percent of market value for recreational fields. There were 24 acres available there and the City had the opportunity to buy 30 percent o f the property, which was eight acres. There were seven acres of playing fields, which provided the opportunity to purchase an extra acre at 25 percent of market value. He was not sure if that would include the gyms, but it did avail the Ci ty of a marvel ous location for an ice skating rink. He bel ieved that was a real- istic consideration. Councilme ber Renzel said that if the proposed initiative suc- ceeded, it would require that the C1tymake substantial. expendi- tures before the fall of 1987. She asked how staff pl anned to incorporate that potentiality in the budget process. City Manager 811 1 Zaner said no funds wore included in the pro- posed budget to accommodate the initiative_ if passed. The City had no idea how much money the initiative conteapl ated :Tor tow radch the City might have to expend. The initiative only spoke to the City providing a feed sty..: 5 5 3 8 3 /04 /85 Councilmember Renzel asked if staff produced any independent cost estimates of site acquisition and construction of a new rink on the Ci ty' s behal f. When the Ci ty 1 ovked at the matter in terms of Greer Park, it was simply asked to provide a site al ready in City ownership, and it was proposed that the construction and, operation of the facility would be privately financed. Mr, Zaner said no. The initiative did not indicate anything about the size, nature or scope of the activity on the site. It simply said the City would provide those facilities. Councilmember Renzel confirmed that if the initiative In its gen- eral form succeeded, requiring the City to provide and maintain a facil ity for ice skating, the City was then legally obligated to comply with the initiative which meant that whatever budget moneys were allocated would have to be reallocated. Ci ty Attorney Diane Lee said that was correct. Councilmember Witherspoon asked about the figure two years ago when the Ci ty talked about dupi icating the kind of fac ility at the Winter Lodge. Mr. Zaner did not recall having a figure for starting from scratch. Councilmember Witherspoon was concerned that no matter what worked out, the City would have to replace the facil ity if they were talking about a l ong- term ice skating program. She saw no advan- tage to having the fac it ity where it was now versus locating it at Jordan, but she wanted to know what kind of dollars they were talking about. Councilmember Bechtel asked if the report received. by Council that evening was available to the public. Mr . Zaner said staff would see that the Subcommittee' s report was pl aced in next week' s Council packet. Councilmember Bechtel supported the Winter Lodge, but was con- cerned that the initiative was vague. Those circul sting the peti- tion were obliged to describe the dollar amount. required of the Cl ty. If i t woul d cost a minimum of two or three mil 1 ion dollars, the citizenry needed to know those kinds of expectations and what might have to be given up. Councilmember Fenzel believed it would be useful in the budget process to have some indication of potential costs the City woul d incur if the initiative passed and where it might find the rev- enues for funding. It was important for the public to be able to evaluate their choices both in signing the initiative and in vot- ing in the November election. P4r. Zaner said given the vague reference in the . initiative, the best staff could do would be to provide a range such as, at the l ow end, the most minimal facility might cost Ux" dollars on a piece of property at *y" val ue, and go to the other end and say ice skating rinks in the Bay Area or , in horther'n California of higher cal fiber would cost "f numberof dollars. He bel ieved that was the best staff could do. Councilmember Renzel clarified that Zuch figures 'would reflect a range of costs dependent on whether the Ci ty used an existing owned piece of property or a new purchased piece of land. NOTION: Ceeecilsxeeer _Nenze1 moved that staff irovide at least a range of costs in the coarse of the bedget process in order for C•emc#1 to anticipate its choices. , NOTION NIES FOR LACK OF A SECOND 5 5 3 9 3 /04 /85 Councilmember Fl etcher said the initiative should be Iliore spe- cific. It was easy to get signatures on almost anything, but the people needed to be informed about the obligations involved. She suggested that when Counc11member s had items on the agenda, it was a disservice to the publ is not to have written material al ong with the agenda item. In the future she; hoped the reports would be in the packet because there was no way for the public , to respond if they did not know what the report said. Councilmember Woolley believed the questions being raised were val id. She and Vice Mayor Cobb had tail ked about taking some sort of action, but bel ieved it was more appropriate to take action if and when the initiative qualified. She believed some type of directive to staff at that time would be something -Council should undertake. Councilmember Klein clarified that if the appropriate amount of signatures were collected, the initiative first went to the Council for action. Ms. Lee said that was correct. Councilmember Klein clarified that if Council chose not to go along with the proposals set forth in the initiative; only then did it go to the public on the ballot. Ms. Lee said that was correct, provided no changes were made to the measure as circul ated. Counc ilmember Klein asked what happened if Council wanted to make changes. Ms. Lee said any changes caul d be pl aced on the bai l of as separate measures, along with the initiative measure, if Council chose not to adopt the initiative in the form cfrcul ated. Cowie ilmember Klein supported ice skating in Palo Al to. There was no question that the program was worthwhi1 a and made a significant contribution to the City. The question was not whether the City wanted to preserve ice skating, but whether the City could afford to preserve it. The City took many actions to preserve ice skat- ing. In November, 1982, the Council granted a three-year option at no cost on the City 1 and on Geng Road for use by the ice skat- ing organization. The promise at that time by the ice skating peo pl e wa s t ha t they wo ul d ra i se the money to bui l d an is e ska tin g fac11 ity on Oeng Road, which did not bear fruit. In April, 1983, the Council denied a request for a $1.75,000 interest -free loan because it did not conform to the City's procedures for lending money, and there was no collateral. In May, 1983, the Council authorized the $25,000 grant On a one- for -one ;matching basis to keep the facil ity open. The Council well knew that the chances of getting the $255,000 back were problematical, That action was taken in the face of the long-standing Council pot icy, going, back to Proposition 13, for no new programs. All along he believed there were statements made by every member of the present and previous Council that it would be unwise, imprudent and not pos- si bl a for those most active in ice ska ti ng to look to the Council to the tune of $2.5 mill ion. He • believed Council must be realis- tic about what it faced. The choice was not between Jordan and the present facility, the fact was that the City' -s uncommitted reserves total ed about $3-.7 mill ion, and each year the City accum- ulated additional sums which were spent on capital improvements such as roads, Greer Park, Terman, and Jordan and many other things. The demands on the. City" s capital improvement budget each year were extraordinary,F and he urged that members of the public attend the budget, hearings -and listen to all of the. things people in the community wanted the, City -to {do +sttlo ,its <monlyxand keep in mind all the other things coming down In the future. The question was the cowmunity's priorities. He urged that the initiative be revamped as there were too many holes in it to be fairly p1 aced to the citizenry. It was not whether ice skating was good, it was 5 5.4 0 3/04/85 how it compared with all the other things the City needed to do and from where the money would come. It was easy to say that the City Council could make the cuts, but where should the cuts be made. Should the City come up with the money by not putting in the $500,000 or $1,000,000 of road improvements done each year. Everyone had to answer those questions, and the choices were not easy. It was an era' of having things done by the.private sector and having government do less. He hoped the private sector would come forward with a substantial portion, if not all, of the money necessary to save the program. He agreed that it was hard work to raise the money .to get something, but there were many examples of where it was done. NO ACTION TAKEN ITEM #9 ARCHITECTURAL REVIEW BOARD RECOMMENDATION RE SEASONAL fRE FACILITY DI T OTHI[CS PARK (SrA `e-5) (LII:192:5) Assistant Director of Public Works George &agdon pointed out that the site plan was inadvertently attached to the wrong ordinance. It should be attached to the park improvement ordinance. MOTION Cauac ilmesher Bechtel moved, seconded by Fletcher, to adopt the staff recommendation as follows:' 1. Adapt a negative declaration finding that the project will not have a sigvsi ficaat impact on the environment, and approve the Site and Design application subject to the following condi- tions: a) Prior to the issuance of a building permit, a detailed soi i s report shall be sebri tted to the Public Works Depart- ment for review and approval. Said . report shall loci ude evaluation of site conditions, subserface borings in pre- posed ball disg 1 acatiores, and recommendations for site development and foundation design. The recemmendatlons stated in tPe approved soils report concerning fvendations, site grading, drainage, mod slope protection shall be irpl eaerrted prior to final inspection of the structures; b) A detailed grading and driftage plan shell be submitted to the Public Works Department for review- and approval; c) No grading shall_ be permitted Oriel the rainy season (October 15 to April 15); d) Roadways shall be greded to ,. direct water fa a lateral dlrocttee across the slope. Ninia+eo roadway width shall be 15 feet. Final construction plans shall be modified to reflect this increase in width i tea foot width: shown ors plans now); e) gutters and splash blocks shall be installed where aeces- sary to minimize soft erosion, subject is the approval of Pobl lc Werhs Engieeertag and instal t ed prior to final inspectisa; f) The building shall be protected with ad automatic fire sprinkler system. The new baildino shall meet all reaeire, newts of the 1979 eRifor'm Fire Code for berlldiegs to the t haserdess fire areal Proposed septic teak' system` is spbjeet to the approval of the Saes Clare twenty Depertmerit of _Eoviroemeeta1 ':Wealth. Prior to:.Oppllcsties1for. a bahiidtag 'emit, ,t0hesit. a letter the 'bslld1e f fidiel; ffas the espartseot of .Enviroa,- seatol Neal tb ladicetlat` that . the site` is sal tai a for a septic tank syste.; NOTION CONTINUE© h) Prior to applicattes for a building permit, submit a final landscape plan to the Architectural Review Board for review and approval. The plan shal 1 1ncl Mde the common and botanical names of all species used, and the number, size, location, and spat img of all plant materials. The approved 1 aedscape plan shall be installed prier to request for final inspection of the structure. Minor modifications to the plan nay be w,'de Mirth, installation, subject to Planning Director's approval; 1) A11 *mistime Newnterey pines bordering the proposed, building site shall be retained, except for the two existing pines located in the area jest west of the parting area and the three pines immediatelynorth and east of the structure. The Monterey pities shall be retained until the newly planted oaks provide as equivalent screen. The decision to removethe trees shall be the mutual decision of the Parks and Planning Departments, with the evaluation made upon the request of either department; j) Plans 'for final 'bui1dfng design and evaldatiias for Alter- natives 1 or 2 Shall be ssbaitteed to "the Planning Depart - meet for review, with final approval to be sada by the Planning Director (it i s recommended that roof vents' for the living factl sty be clustered, if possible); and k) If use of Alternative 3 is desired, plans for Alternative 3 shall be, submitted to the Architectural ,Review, Board for final . approval. 26 Approve a Park Improvement Ordinance authorizing . the construc- tloa of they Feethfl 1 s Fire Facility within Foothills -Park; and 3. Adept a litiadget Amen intent Ordinance to increase the appropria- tiep far- CIP. S3-02 by $43,204, and decrease the appropriation . for the Capita] Reserve Fond by $43,200.' , 0R a ANCE F R ,FIRST READING entitled "ORDIM$CE. OF THE ALTO APPR.OYNC AND' ADOPTING PLANS FOR A Pi FACILITY WITHIN FOOTHILLS 'PAW` ORDINANCE 3603 entitled °ANDI$4N E OF TIE C01C IL OF THE CITY er PALO- ALTO MIMING ' TI11E ' 'UDGET FOR IRE FISCAL TEAR 43$4.Rar TO PROVIDE. AN ADDITIONAL APPROPRIATION FOR CAPITA. IMPROVEMENT PROJECT RC *3 -OR. 'FOOTHILL, FIRE FAC1LITY". NOTION PASSED nnaeim*®sly. ITaJEM #11 RESOLUTION R.E PARK DO►IEEYARD UNDERGROUND CONVERSION EY NO. �:-- Director of Utilities Richard Young said the Staff report was a follow up on the direction from Council in Noveiber, 1983, and contained the information necessary to pursue _the- topic Coeac't1 s* or 'plate **tied,' seceedetd Ay; Suterius, ap revel of b.be ressl stienss A LNTISM_..43RO .oti ti sSRT 0ll 0F: Tip. _ C,D .: CIL SF r - - ,--- AL 0 *tS R1'E IU S Td 1*SECTION 1t.16R a •F C PTEI: . .:1-$ _, TIT - AUTO • 4�1ClPAL : V $.Yr E TI EI r w , .. : L TY 111$11,1CI. - ZI !AU R$ * _ 3 DT1.ITIES IO tenvtoIS iI 5 5 4 2 3/04/85 NOTION CONTINUED RESOLUTION 6357 entitled "RESOLUTION OF THE COUNCIL OF ALO ALTO OF INTENTION TO ACQUIRE AND CONSTRUCT IMPROVEMENTS PARK BOULEVARD UNDERGROUND UTILITIES CONVERSION" NOTION PASSED ■raeieoesly. ITEM #11, ORDINANCE RE CITY UNIFORM SALES AND USE TAX (FIPI 4) (0411:103:5) Councilmeriber Sutorius said the. impact of the exchange was a net loss to the City of Palo Al to of approximately $600,000 to $700,000. He was -curious about control measures that might be exerc ised to affect the operating costs such that the net loss would be lessenred. City Manager 8i11 Zaner said there would be some reduction in the Communications Division with Mountain View having withdrawn from the center effective July 1 , which meant the Ci ty could reduce, to some extent, the numbers of communicators in the Communication Center because the City would not have to dispatch Mountain View' s equipment. Additionally, over the next few years, the Capital Improvement Program would contain ; requests for new equipment, such as computed aided dispatch equipment, in the Communications Center that staff believed would make the operation more efficient. The equipment has been • on the Market for many years and was now per- fected. Communications was rel atively l abor intensive and required a person to be in. the center at a dispatching consol e at all times in order to receive emergency- phone calls and dispatch emergency radio traffic, Cowie it member Witherspoon said that since the City's sal es tax revenue seemed to be ,increasing, she hoped the gap might not be so horrendous in future years. Mr. Zaner said that when looking at the formula upon whichi it was all based, the only portion the City was getting back, because it was the only portion it gave away, was the increment between what it now received in any given quarter and the same amount rt received in a corresponding quarter when the Sales Tax Agreement was signed. It was not like the City was getting back a big piece of its sales tax, it was getting back a rel ativ,ely small piece which was precisely why the County was getting . out of the agree- ment. NOTION: Ceoncfleermber ii1thersfoea moved, sect ded by . Woolley, approval of the ordinance. ORDINANCE 3604 entitled "ORDINANCE Of THE COUNCIL OF THE LTO AMENiINR Ci0APtER 2.32 OF TNE PALO ALTO MUNICIPAL CONE" MOTION: PASSE. •.ani.oesly. . ITEM #12 NAMING OF ARASTRA PgOPERTT (PLA 9) (CMR:195: S) Co unc 11 member Klein asked for mote input from the Hi sto ric Society On •some of the individuals who were suggested for the naming of the property. NOTION: Ceuscilwewber Klein moved, sesemded $;p W40011(l• to refer the sibject of the naming of .:the Ara'stra Pro rt te. tke Fiessce mid fell1c marks (FAPit) CoOe1ttes ter farther tt ;ad t coAsi der ill five Otter sales , fro. tom: Ni stork _ Redeertos ` ®nerd at this tise Councilmember Fl etcher asked .what kind of information .was hoped to be gained by the referral and what type ; of discussion was envisioned. 5 5 4. 3 3/04/85 Councilmember K1 ein said he knew nothing nther than the brief description given end wanted to know more about Dr. Lee. He knew some of the things accomplished by Dr. Lee and knew he was a per- son of some controversy. He preferred to name the property after Dr. Lee, but wanted to hear from some of the people who knew Dr. Lee when he was very active in Palo Al to. Councilmember Wi therspoon bel ieved in honoring hi storic persons and that the Lee fancily contributed much to the City, but there were other Lee properties for which would sooner or later be more appropriate to use his name. Her experience with pieces of prop- erty, such as the Arastra Property, that were. in the public eye for a long time, was that it was hard to get the publ is to change the name. It could be named anything, but would always be called "The Arastra Land" or the "Arastra Preserve." She preferred the property be called the "Arastra Preserve."' She would not support the referral motion. Councilmem er Woolley said if the matter was to .be referred, they should consider the other names at the same time. Some time ago, staff was asked to consider any other names on the present prop- erty that would conceivably be candidates for change. It seemed that since there were five names from the Historic Association, Council might consider all names of the property at once. MAKER AND SECOND INCLUDED CONSIDERATION OF FITE NAMES IN NOTION Counc llmember Renzel generally concurred wi tea Councilmember Wi ther spoon', s anal ysi s. She b el ieved tha t whit e some of the hi s- torical associations with the property were of some interest, there was a fairly well defined .identity of the property asso- ciated with the name Arastradero. It told people where it was and she bel ieved Arastradero defined the nature of the I and. The road and the Creek were named in relationship to that character, She was incl fined to vote against the referral and support a motion to name the property the "Arastradero Preserve" that evening. Councilmember Fletcher said the name of "Arastradero Preserve" was originally recommended by the HRB. At the time, the Council voted to look at other names. She was still satisfied with the name "Arastradero Preserve." Mayor Levy bel ieved names gave the Council an opportunity to enrich the community in terms of making more evident ' to residents of the community people who made historical contributions to the community whose names otherwi se might be lost with the passage of time. He favored using the names of individual s who were K omi-. nent in Palo, Alto' s history or other types of events that were prominent or important in Palo Al toes history. He .disagreed .that areas could not be changed. When he hived in New York, 'he remem- bered using the. Idiewild Airport, quite. a bit, and it was now "Kennedy Airport." He bel ieved it was important - to not lose the opportunity of enriching Palo Al to s hi story .by. the careful choice o f names. Since Arastradero was already a name on the l and , he saw the opportunity to add a aew name. Councilmember Fletcher said when the 'in kie Way Bicycle/Pedestrian Bridge_ was being planned, Jim Hawkinson, a City employee. was killed riding a bicycle, and the bridge was n.ecased in his honor. She had never heard the Wilkie Way bridge referred to by any other. name. Councilmember, Klein said sometimes name changes worked and. some- times they did not. The Greer Wiles School was now the Duvenek School and' everyone referred to it .a,s the Duv k,ehe School . We associated himself with the, remarks of Mayor Levy, and believed the City` should not pass up an opportunity to use ' the ". sing Of a major facility to honor a leading citizen from the City's past. 5 5 e 4 3/04/85 Couhcilmember Sutorius said he went into the discussion comfort- able with the name "Arastradero Preserve" because he believed geographic identification was not inappropriate and there was substantial identification that al ready existed in the publ lc' s mind. He was also comfortable with the recommendation to con- sider Dr. Lee's name being associated with the preserve. If it wert to a vote, he would vote to refer the matter in the anticipa- tion that "Arastradero Preserve" would still be among the names to be considered. If there was a vote for "Arastradero Preserve" that evening, he was willing to settl e on that name. Counc ilmember Woolley asked about the difference between Arastra and Arastradero, Mr. Brown believed "Arast•adero" referred in Spanish to the sleds that were historically used to bring down logs from the hills. Arastra was associated with the firm who owned the property before the City acqui si tior,. Councilmember Wooll ey Said she . had heard further expl anations that it had something to do with the sl aughter of cattl e and somethi ng to do with a mining operation. There .was a wheel that had some- thing to do wi th breaking down the ore. MOTION TO REFER PASSED by a vote of 6-3, Fletcher, Renzel , Witherspoon voting "no." Mayor Levy clarified that part of the referral was to al so look at other landmarks in the Arastra property and discuss the possi- bil ity of names for those 1 andmarks as appropriate. ITEM #13 , REQUEST OF VICE MAYOR COBB RE CALAVERAS PROJECT (UT I Vice Mayor Cobb agendized the item to give the City Manager a chance to respond to some of the issues raised by Mr. Schaefer, to request 4 staff report dealing with those issues on a point- by - point basis, and to note that should it become necessary, a work session would be appropriate. Given the magnitude of the under- taking, he bel ieved Counc i1 shoul d be aware of al 1 the detail s. City Manager Bill Zaner said the natter pending with regard to the Calaveras Project was before NCPA. The action was taken many years ago to enter into the project, and the City did an analysis of the project and kept close tabs on it. Staff delivered to Council that evening a lengthy memo (which is on file in the Ci ty Clerk's office) which he believed would• answer many of the ques- tions raised. With regard to Vice Mayor Cobb's request, staff would take Mr. Schaefer's letter and respond to it point by point, and if Council still had questions, staff could try and answer them. As far as he was aware, there were no issues pending before NCPA tha t- would return for immediate Council action. There were financing issues before NCPA, but they were purely NCPA issues and would not require the Palo Al to City Council to take any action. Staff woul d get .the analysi s of Mr. Schaefer's comments to the Council Vice Mayor Cobb underscored that 'the offr amp . with regard to the project was in 1982.` One coul d argue about the ti re of the share, but that was a decision made in- 1982. As .pointed out, it was now an NCPA- project, wind short of the entire NCPA pulling out of the_ project, i t woul d go forth •wi th Palo Al to' s share. He bei ie 1d that was important, Councilmen ber Bechtel. realized that Council . voted in 1982 and- said there was a split. vote as to the degree to which the City - shoul d participate, .She asked - what would' happen if the City .foOnd adds tlonk1 information and withdrew. 5 5 4 5 3/04/85 Mr.. Zaner said regarding whether a member city could withdraw from. any of the projects once having signed a "Third Phase Agreement," he was advised by NCPA counsel that it would be done at the peril of being sued by the other members who had legal recourse if a city chose to viol ate the agreement. Ms . Lee said she had not specifically looked into the issue of whether the City had the option of withdrawing and the conse- quences other than the general assumptions made by the City Manager because it was not part of the direction she received from the t-s_ounc H. Once the City entered into a contract, the contract was iot reviewed to determine whether the. City could or should terminate it unless that direction was received from the City Council . Councilmember Renzel said the letter from Mr. Schaefer contained a March 28 date which seemed to be a critical date at which Council :night be able to make a statement about its concerns. Mr. Zaner said the March 28 date would be an NCPA financing date. There might be an opportunity to comment on the financing, but that date was when NCPA met with its financial advisors and made its final decisions as to how it would proceed. Counc ilmember Renzel assumed that if the Council made some state- ment prior to the issuance of the financing, the. nature of the Ci ty' s 1 labil it,y wi th respect to damages to NCPA might be somewhat diminished. Mr. Zaner did not know. Co unc il member Re n zel cl arified a statement in the report tha t "the bulk of the financial obligations through 2005 associated with the project must be transferred to take advantage of the preceding economical al ternatives to meet suppl emental requirements." She assumed that meant the bulk of the power from Cal averas had to be sold up through 200E. Mr. Zaner said that was correct. Sale of a major, portion of Cal averas was al ways a part of the pl an incl uding the proposal made in 1982 when staff recommended a 10 percent share. Part of Calaveras would always have to be sold. Councilsember Renzel asked for cl arification of the statement that the 1985 costs for Cal averas represented a per unit cost assuming for the worst case conditions, first with no sale, and second wi th excess energy at one-half of PG&E's rates, which stressed the importance to the City of laying off as much of the financial obligation as possible for the first 15 years of the project life. Presumably, the range was either no sale or hai f of PG&E's costs. Mr. Zaner clarified that in order for the project to work. and it was true in 1982 al so, some of the power must be sol d. Otherwi se, the economics of the project would not function well. In the analysis to be presented to Council as a result of Mir. Schaefer' s 1 etter , sta ff woul d go into some detail as to how it was bel ieved some of the power could be sot d and the degree to which it could be disposed. Staff knew_ that a number of the sister cities in P4CPA were\ interested in taking a share of the power. Counc ilmember Renzel said page 4 tal iced about load management and indicated that the extent to which load management might be pur- sued would depend upon how successful they were in selling Calaveras. That suggested to her that if. Calaveras could not be sold to someone el se, they would essentially stop deterring the citizenry from using electricity so they would pay the higher rates and use up some of the power. Mr. Zaner . said they tried to -indicate that the cost of power to citizens of Palo Alto and the industries was a consequence -of a mix. There was Cal averas power, energy savings, some of the power 5 5 4.6 3/04/85 from geothermal that was not sold and WAPA power . It all blended together and there was a mix. [here might come a time when it made sense for the City to be more heavily into energy conserva- tion and load management than at other times. Councilmember Renzel asked whether it was reasonable to assume that i f energy was expensive, everyone woul d be into load manage- ment, Mr. Zaner said yes. As the cost of energy rose, everyone looked for ways to keep the bill down, and load management was one of the most obvious ways to keep i t down. Staff considered load manage- ei'ent a resource and not, an expense. Co unc 11fa ember Renzel was thi n ki ng tha t the pc ten ti al purc ha ser s of the power would al so regard it as a resource. All the projections Council was shown, both in the 1982 report as well as the one before the Counc it , went through 2005, and she asked if it was possible to predict beyond a 20 -year time frame wi th any degree of certainty. Mr, Zaner said it was difficult to predict beyond 20 years, and it was difficult to predict five or six years. He called Council's attention to the fact that five years ago, there was an oil embargo and people 1 ined up in their automobiles in order to get gasoline. Now there was an oil glut which no one anticipated. It was known that the federal government was talking about an energy tax can oily and that WAPA was going to change its pricing poi icy. It was al ready known that the federal government had in its budget a change in the marketing policy to change the interest rates on the power the City received from the Central valley Project. Councilmember Renzel asked if Turl ock or some other group had such an interest in the Cal averas output, whether there was any poten- tial to negotiate wi th them to take on the 1 lability for the portion of the project that staff in the first instance . in 1982 suggested the Ci ty did not need . Mr. Zaner said the City was in the process of doing that. Councilmember Renzel asked if Turlock might agree to take some of the Cal averas output before the financial issue arose. Mr. Zaner doubted it. The financial matter would move by the end of March, 1985. Any deal with Turlock or anyone el se would fi r st have to go to the Council for approval , and to the other board or Counc it . Councilmember Renzel clarified that they were not just talking about selling the power to cOMe oute of Cal averas, but rather selling the entire liability issue, Mr. Zaner said it depended on what the buyer was willing to buy. Councilmember Renzel said she woasld be interested in that informa- tion because in 1982, staff recommended a 10 percent participation and Council better than doubled it. Now the economics looked less favorable than they did in 1982, and that indicated to her that the City bit off a big chunk-, . Mr. Zaner agreed. It was hard to see 20 years in the .future. The Council s successors in 20 years might be thankful that the pres- ent City Couvr.‘i1 got a 1 arge share of a hydro plant. The best type of arrangement for the City would be the most flexible one to allow the City to sell off what it did not need now, but recapture it if and when it ever did. NOTION: lire 'layer Cobb mewed, seconded by Uteri es, for staff is schedule a verb session en the Cal averas Project as seen as pissfbl e. 5 5 4 7 3 /04 /85 Mayor Levy asked when the work session might happen. Mr. Zaner doubted that a work session could be scheduled before March 28. Staff was preparing a presentation for Council on the Energy Resource P1 an of which Cal averas was a 1 arge part. Council might want to hear the discussion in the context of that Energy Resource Pl an . Staff would provide the memorandum to Council well in advance of the presentation, which was scheduled for April 17. It might be helpful to see Calaveras in the context of all the o ther energy pl anning going on. Councilmember Witherspoon said in 1982, one of the reasons for getting as much a share as possible was the City was offered marry opportunities in nonrenewable resources including a coal plant which were not only environmentally unpopular, but also did not 1 ook to be economically feasible. Hydro was one of the few, along with wind power, that was a renewable energy source and was attractive for that reason irrespective of some of the high costs. The wind project did not turn out to be feasible, but she remem- bered that Council opted for the Cal averas project after reviewing the entire picture. She preferred to again look at the entire picture. She believed it was a good project, and given all the o ther unknown factors, she still bel ieved Council did the right thing. Councilmember Klein asked if he was correct in assuming that staff did not agree wi th Mr. Schaefer' s comments. Mr. Zaner said that was correct. While he had not reviewed Mr. Schaefer's letter, he did review some draft notes Mr. Schaefer shared with him . One had to make a series of assumptions as to what would happen in the future in order to decide what to do then, which was what was done in 1982. The nature of the projects took a long time to build. Staff did not bel ieve that the situa- tion was as drastic as Mr. Schaefer painted it, The analysis pro- vided by staff would point that out and staff would go into more detail in the analysis of Mr. Schaefer` s comments. Staff agreed that power needed to be sold off. The City did have a large share o f the project, and while it would be difficut to sell the power off, staff bel ieved it caul d be done. Councilmember Bechtel said the City had been unable to sel l off power for the past two years. Mr. Zaner said the fifty was unable to sell off power because no one knew up until the last month what the cost of., the power woul d be. The City just received the bids for the ttCPA/C.*I averas Proj- ect. The cost of the project and the power was now known. Each City did its own analysis to determine whether the project worked for them. The game was starting in that sense because up until then, no one knew the costs. Councilmember Renzel asked if there was any possibility of post- poning the MCPA decision to go 'forward wi th bond financing for a month or so until the City had a chance to have the study session. She did not believe it was prudent for the Council to ignore the significant information and lose what opportunity- might remain to take some action to minimize the losses to the citizens. Mr. Zaner did not believe there was any possibility of del eying the dCPA action. tCPA could act even if. Palo Alto refused to or voted against it for some reason, and Palo. Alto was still bound. Palo Al to was part of the - project. If Council- wanted to .try and find a way to get out of the contracts that was another. question. Assuming the City adhered to its contractual obligations, Palo Al to was a part of the project and : tit PA did not need its vote to p "oc eed 5 5 4 8 3/44/85 Mayor Levy supported the study session and thanked Mr. Schaefer for bringing the information to the Council. Ile would withhold judgment on the information until the study session and even then he was aware he would not know everything because it was a long- term project and situations changed. It was not an inelastic market --as costs rose, there would be conservation actions taken the re would be changes from year to year. It was important for Council to tie aware that it was a significant project for the City involving many millions of dollars. Just because Pal o Al to was a partner with, many other communities, did not mean Palo Ai. to could bury its head in the sand. It must act as i f it was the sole developer of Cal averas because it was that important. He believed there were always al ternatives and would be every year in the future. There would be buyers willing to buy the City's share at a price. It could be a major loss for the City or it might not be. He believed the City must look at its involvement in Calaveras every )ear, see what the market was and constantly reeval uate the al ternatives. He saw the study session as an opportunity in 1985 to do that, and in 1986 .and all subse- quent years, Council should meet again to review it. The City should never consider itsel f to be locked in. He was grateful for the actions taken by past Councils in putting the City in its present position which was enviable among all cities. He hoped the present Council could act so that future Council s would be appreciative of their foresight. NOTION PASSED unanimously. Counc ilmernber Renzel said she was uncomfortable about the timing because the study session would happen subsequent to the RC PA actions. If Councii was persuaded that it embarked on a financial di sa ster , i t would have lost one significant opportunity to minimize it. MOTION: Coanc1l®eauber Renzel moved that the City Attorney pro- vide the Council with a report on the City's legal options with respect to the projecto post haste. MOTION DIED FOR LACK OF A SECOND ITEM #14, CANCELLATION OF MARCH 25, 1985 COUNCIL MEETING (COU ) Mayor Levy said the March 25, 1985 Council meeting confl is ted wi th the National League of Cities Conference in Washington Q.C. which many members of the Council would attend, MOTION: Mayer Levy maned, seconded by Klein, to cancel the March, 25, MI5 City Council meeting. MOTION PASSED unanimously. ADJOURNMENT Council adjourned at p.10: 05 ATTEST: APPROVED: yor